Instructions for your successor trustee
Do you need Instructions for Your Successor Trustee?
Instructions to your successor trustee (the person or entity that takes over management of the trust after your death) are also included in most estate plans. Your successor has a very important job and should be someone you can trust and who is capable of keeping accurate records, meeting legal deadlines, and handing complex financial issues.
Why Include Instructions?
Including instructions helps the successor trustee honor your wishes. Some common instructions include:
- Guidance on decision making if you give your trustee the authority to make discretionary distributions.
- Whether you want the trustee to prioritize certain goals or needs when making discretionary distributions.
- Whether the trustee can withhold distributions in certain situations, such as a bankruptcy, pending lawsuit, or divorce of a beneficiary.
- Information about a trustee’s legal duties that are imposed by state law.
